Google commits $190B to AI infrastructure as it unveils new TPUs
Alphabet CEO Sundar Pichai announced at Google I/O 2026 that the company expects to spend $190 billion in capital expenditures this year, a six-fold increase from $31 billion in 2022, as U.S. tech giants are projected to invest over $700 billion in AI infrastructure. Google unveiled its eighth-generation custom silicon with a dual-chip architecture for pretraining and inference. Nvidia reported second-quarter revenue guidance of $91 billion, beating Wall Street estimates, and announced an $80 billion share repurchase program alongside a dividend increase from one cent to 25 cents per share.
Xi, Putin extend 25-year treaty, deepen strategic partnership
President Xi Jinping hosted Russian President Putin in Beijing on Wednesday, days after US President Trump departed the same capital. The leaders extended a 25-year treaty and discussed the Power of Siberia 2 gas pipeline, which would deliver 50 billion cubic meters of Russian gas annually to China. Reuters reported China secretly trained approximately 200 Russian military personnel in Beijing and Nanjing late last year. Over 99 percent of bilateral trade is now settled in yuan and rubles following Moscow's expulsion from SWIFT.
China rare earth exports to Japan rebound but shortages loom
China's exports of rare earth permanent magnets to Japan rose 2.5 percent in April, partially recovering from a 17.3 percent collapse in March, Chinese customs data showed. Japan ranked ninth among buyers of the magnets, which are critical for electric vehicles and advanced weaponry. The rebound follows a January Chinese ban on dual-use items with military applications to Japan amid an ongoing diplomatic dispute over Taiwan. Japan's broader exports climbed 14.8 percent as manufacturing activity slowed, with S&P Global warning of intensifying cost pressures.
Iran Tightens Grip on Strait of Hormuz, Trapping 1,500 Ships
Iran has established de facto control over the Strait of Hormuz, requiring government-to-government negotiations, Islamic Revolutionary Guard Corps vetting, and fees up to $150,000 for safe passage through the waterway carrying one-fifth of the world's oil. Between April 18 and May 6, fewer than 60 ships crossed versus the normal daily average of 120 to 140, leaving 1,500 vessels with 22,500 sailors stranded. Iran has also announced plans to charge access fees on undersea internet cables crossing the strait, potentially generating up to 13 billion euros, though bandwidth through the area accounts for less than 1 percent of global bandwidth.
WHO declares Ebola outbreak a public health emergency
The World Health Organization declared the Ebola outbreak in the Democratic Republic of Congo a public health emergency of international concern, the second-highest alarm level, after the virus spread to Uganda and an American doctor was evacuated to Germany for treatment. Officials confirmed 51 cases in eastern DRC but warned the actual scale is far larger, with nearly 600 suspected cases and 139 suspected deaths. WHO said the risk is high nationally and regionally but low globally, and the outbreak does not yet meet criteria for the highest pandemic emergency level.
Trump calls Taiwan arms a 'negotiating chip' with China
President Trump called a $14 billion Taiwan arms package "a very good negotiating chip" with China following his summit with Xi Jinping in Beijing. Analysts warn the comment could embolden China to intensify pressure on Taiwan, which depends on American military supplies. Lai Ching-te responded that "Taiwan's future cannot be decided by foreign forces." Experts say China is unlikely to believe Trump could trade away Taiwan arms sales entirely. "What price can China pay that would get the U.S. to sell out Taiwan?" asked scholar Shen Dingli. "There isn't any."
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- EU Reaches Deal to Lift Tariffs on Most US Industrial Goods. After five hours of talks in Strasbourg, EU legislators backed the deal signed at Trump's Turnberry resort, clearing the way for duty-free access for American goods while the US maintains 15% tariffs on most EU exports.
- Standard Chartered to cut 8,000 jobs as AI replaces staff. The London-based lender will replace 'lower-value human capital' with technology as banks across the industry embrace automation. HSBC, in contrast, has urged staff not to resist the shift.
- OpenAI Files for IPO After Winning Musk Court Battle. The ChatGPT maker is rushing toward a September public listing, working with Goldman Sachs and Morgan Stanley on what could be one of the biggest tech IPOs ever, just one day after defeating Musk's lawsuit.
- UK becomes first G7 nation to sign Gulf trade deal. The agreement with the Gulf Cooperation Council, comprising six states, is expected to boost the UK economy by £3.7bn annually and cut duties by £580m a year on British exports ranging from food to medical equipment.
- Oil plunges 4% after Trump calls off Iran strikes, signals talks. Trump called off planned military strikes at the request of Gulf Arab allies, saying he was "an hour away" from ordering the attack. Financial analysts remain skeptical, noting similar reports have circulated in recent weeks without materializing.